Md. Senate OKs 1st gas tax increase in 20 years

ANNAPOLIS, Md.—The Maryland Senate has given final approval to the state's first gas tax increase in just over 20 years.

Gov. Martin O'Malley pushed for the increase to help fund transportation projects and it awaits his signature.

The Senate voted 27-20 on Friday for the measure.

The measure puts a new 1 percent sales tax on a gallon of gasoline beginning in July. It also includes a provision to raise the tax automatically to adjust for inflation. The price of gas will rise to about 4 cents more per gallon in July.

The bill also includes additional increases in future years. It could rise to 5 percent in 2016, if Congress does not approve a measure allowing states to charge an Internet sales tax.

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